<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111413114/63722ef39c7e80680e0c24edjpeg.jpg" alt="" width="1280" height="852"/><figcaption>Photo: NEPALI TIMES ARCHIVE</figcaption></figure>Prime Minister Sher Bahadur Deuba was forced to sack Janardan Sharma this week, but only after his finance minister became a political liability because of sinking neck-deep in scandals.Instead of trying to resolve Nepal’s growing economic crisis, Sharma inducted yes-men with no finance background into the ministry, and ousted the Rastra Bank governor for blocking a money-laundering scam. He then involved an unauthorised ‘expert’ at a late-night budget drafting meeting to change tax rates, and later alleged deleted CCTV footage implicating him.Much of the credit for exposing Janardan Sharma goes to Nepal’s mainstream media which investigated his wrongdoings, as well as exposing corporate houses including the Chaudhary Group, Shanker Group, Saurabh Group and Jagadamba that stood to benefit directly from Sharma’s tax rebates.Deuba coddled his finance minister till the end despite growing criticism from within his Nepali Congress, as well as pressure from Sharma’s Maoist Centre party. All this meant that the prime minister and his finance minister took their eyes off the ball as Nepal’s economy started going into free-fall.This week Sri Lanka declared it did not have cash to import any more fuel, and officially declared bankruptcy. Nepal’s officials have said the country is not in the same debt trap, but there are many indications that the crisis is deepening.The clearest yet was Nepal Oil Corporation (NOC) asking the government this week to implement 10 austerity measures to reduce petroleum consumption, including by reimposing the two-day weekend, odd-even traffic rule, quota at filling stations, discouraging vehicle use, car pooling, and a ban on import of petrol and diesel vehicles.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111413114/63722ef69c7e80680e0c24eejpeg.jpg" alt="" width="800" height="565"></figure>Illustration: RABINDRALast week, the government reduced the tax on petroleum imports to reduce petroleum prices, but the NOC warned of “dire consequences” because it was running out of money.“Reducing gas prices by reducing taxes was absolutely of no use in the long run. They could have instead used tax money to promote and invest in sustainable measures,” says climate negotiator Manjeet Dhakal.He adds: “By reducing the tax the government is essentially abusing democracy by claiming to reduce the burden to the people in the guise of improving its chances in elections.”It is because of such short-sightedness that Nepal’s economy was in trouble long before Covid and Ukraine. The banking sector had a liquidity crisis because it had over-extended loans to real estate speculators. Stagnant overseas remittance, falling exports and a jump in imports had led to a growing trade deficit, and depleted foreign exchange reserves.However, some experts still believe that Nepal’s macroeconomic picture is sound, a healthy monsoon so far could mean a good rice harvest, and the INR-NPR peg cushions Nepal from the worst impact of the global crisis.They also say the fuel crisis provides Nepal with the perfect opportunity to accelerate the shift away from fossil fuels in transport, industry and households. Nepal needs to wean itself off petroleum not just to reduce its per capita carbon footprint, but to cut consumption of fossil fuels which now make up 20% of the total import bill.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111413114/63722ef89c7e80680e0c24efjpeg.jpg" alt="" width="1150" height="1488"></figure>In the last nine months, Nepal spent Rs218 billion importing petroleum products, which is 82% higher compared to the same period last year. This is nearly 20% of the country’s total imports, and is worth nearly double the income from all exports.Switching to electric public transport and battery vehicles to reduce the petroleum import bill by just 10% would save the county at least Rs21 billion a year.However, from July-December 2021, Bagmati Province alone saw the registration of 81,227 new vehicles, 75,573 of which were motorcycles and scooters. If they had been electric two-wheelers, fuel costs would have been reduced.“At this rate, we maybe fast approaching the fate of Sri Lanka and the only way ahead is maximising the use of domestically generated electricity primarily in the transport sector,” says Bhushan Tuladhar, board member of Sajha Yatayat which is starting electric buses in Kathmandu starting this week.“We have policies in place, but crucial details are missing such as how to incentivise electric buses, dedicated charging stations and coordinated management of public transport,” Tuladhar adds.Electric mass transit has long been identified as a cost-effective solution, and the government needs to facilitate loans for electric buses which are about five times more expensive than diesel ones, or subsidise them so that the private sector can invest in them.Industry experts are reworking Nepal’s Nationally Determined Contribution target submitted to the UNFCCC (Framework Convention on Climate Change) in 2021 with a particular focus on electric public transport.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111413114/63722efb9c7e80680e0c24f0jpeg.jpg" alt="" width="3214" height="2143"></figure>Photo: AMIT MACHAMASI/NEPALI TIMESThey have proposed an increase in sales of electric public transport to 60% by 2030, reduction in custom and excise duties for electric buses, grants and soft loans to procure them, and ensuring at least three provinces operate electric public transport by 2025.The other low-hanging fruit is a shift from LPG to electricity in households and restaurants, but transmission lines and distribution need to be upgraded so the grid can handle the load.In the Tarai, electric rickshaws are becoming popular, and municipal biodegradable garbage and crop residue can all be turned into compost to reduce imports of chemical fertiliser.All of this will also help Nepal meet its global climate targets set at Glasgow during the COP26 last year to achieve net-zero by 2040, and 45% forest cover by 2030.Nepal therefore needs to do its bit to reduce its petroleum imports to save both the economy and ecology. But that needs political will, which is sorely lacking during this election year.Says Bhushan Tuladhar: “If we don’t act even now, it will be too late. We need to work on energy, economy and environment simultaneously by involving both the government and the private sector.”Read more: <a href="https://www.nepalitimes.com/latest/sky-high-fuel-price-hits-nepals-tourism-airlines/">Sky high fuel price hits Nepal’s tourism</a>, airlines, Nepali Times

Sonia Awale

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Fueling Nepal’s economic crisis

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101144/63720e189c7e80680e0b78fajpeg.jpg" alt="" width="1500" height="900"/><figcaption>Illustration: SUBHAS RAI</figcaption></figure>The Ukraine War has sent the price of fuel soaring, forcing Nepalis to play Russian roulette at the petrol pumps. Inflation has hit the roof, and the country is going belly-up.The Ass feels it is its duty to come to the rescue with innovative suggestions to narrow Nepal’s trade gap. (You can thank me later.)1. Legalise gold smuggling. Nepal’s economy has been forever dependent on importing gold and sneaking it into India for a hefty profit. The grovelment foolishly banned this thriving trade. Allowing gold re-export would help pay for our burgeoning imports.2. Sadly, Nepal has turned from a rice exporter to nett importer. This is unsustainable. Nepalis need to switch from rice to eating Made in Nepal WiFi Instant Noodles, and this would save us precious foreign exchange.3. The price of petrol is now so high that it is cheaper to use the friendly neighbourhood liquor store as a gas station, and fill up the car tank with Euro 5 high octane Vodka.4. Nepal’s rivers run low during pre-monsoon months, reducing electricity generation at peak hour. We have to import electricity from India to meet the shortfall, widening our trade deficit even more. What to do? How about if all of Nepal’s 30 million people emptied their bladders on the banks of our rivers, thus augmenting the dry season flow of the rivers, and increasing electricity output. My back of the envelope calculation shows that if an average human passes 10 litres of urine daily, this would mean an extra 300 million litres flowing down our rivers. Enlisting the support of patriotic water buffalos, cows and goats would double the average flow of the Kosi River, for instance, to 5,000 cubic metres per second, thus increasing installed capacity of hydro plants so that we do not have to import electricity from India, and save precious ₹ ₹.5. Remove the price parity between diesel and kerosene to resume fuel adulteration. This would reduce Nepal’s diesel import, and save us wads of cash.6. Petrol is more expensive in India than in Nepal, and this opens up new avenues for the country to reduce the country’s trade gap. If Nepal imported more fuel from India, we could smuggle more of it back across the border and help narrow the balance of payments deficit.7. Bihar is dry, and Nepal’s economy is now self-sufficient in alcohol production. Exporting surplus liquor can save the country from bankruptcy. The way to do it is to extend the Raxaul-Amlekhganj petroleum pipeline to Kathmandu for the exchange of bodily fluids between the two countries. Use the same pipeline that pumps petrol to Nepal in daytime to export bootleg moonshine to India at night, and earn hard currency. We don’t even have to pump it, just let gravity do the trick.

Ass s

7 ways to save Nepal

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114091156/637202fc9c7e80680e0b27e3jpeg.jpg" alt="" width="2048" height="1366"/><figcaption>Vehicles are one of the biggest emitters of PM2.5 and other pollutants in Kathmandu. Photos: AMIT MACHAMASI</figcaption></figure>It is that time of the year again when smog makes <a href="https://www.nepalitimes.com/here-now/air-pollution-is-more-dangerous-than-smoking/" target="_blank" rel="noopener noreferrer">Kathmandu’s air hazardous to health</a>. Hospitals are swamped not with Covid, but COPD (Chronic Obstructive Pulmonary Disease).Once more, there is a flurry of media headlines about the dangerous concentration of suspended particles smaller than 2.5 microns from diesel exhaust.Read also: <a href="https://www.nepalitimes.com/banner/happy-new-air/" target="_blank" rel="noopener noreferrer">Happy New Air</a>, Sonia AwalePublic awareness about air pollution is at an all-time high, the average life expectancy of Kathmandu’s residents is reduced by at least four years. Yet, nothing happens. Why?“The awareness and knowledge have not translated into corrective action,” explains environmentalist Bhushan Tuladhar. “We know about vehicle emission tests but we ignore it, open burning is bad but we don’t stop, we have the opportunity to reduce air pollution with electric mass transport but we don’t invest in it.”<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114091156/637203009c7e80680e0b27e4jpeg.jpg" alt="" width="1500" height="1000"><figcaption> </figcaption></figure>Air pollution was directly linked to at least 42,100 deaths in Nepal in 2019. Almost half of that was due to breathing in particles smaller than 2.5 microns in diameter which can cross the air blood barrier in the lung capillaries. Most of those particles come from <a href="https://www.nepalitimes.com/here-now/green-sticker-green-light-to-pollute/" target="_blank" rel="noopener noreferrer">vehicle emission</a>.From 1990 to 2015, the number of vehicless in Nepal grew by 1,995,404 — most of them in Kathmandu Valley. In five years, that figure doubled to 3,987,267.This figure doesn’t include the exploding demand for cars and motorcycles after the end of the Covid second wave in mid-2021. Nepal spent Rs543 billion in importing vehicles, transport equipment and spare parts in four months from mid-July to mid-October, against Rs357 billion and Rs418 billion for the same periods in 2020 and 2019.“There has been an unexpectedly high demand for private vehicles in Nepal after the pandemic, especially two wheelers given the public’s hesitancy to use buses due to coronavirus fears,” says Dhruba Thapa of the National Automotive Dealers Association.<iframe style="border: none;" title="Total vehicles in Nepal" src="https://e.infogram.com/e0cdbfd0-0b3c-4f57-851e-7aced6e69116?src=embed" width="700" height="700" frameborder="0" scrolling="no" allowfullscreen="allowfullscreen"></iframe><a style="color: #989898!important; text-decoration: none!important;" href="https://infogram.com/e0cdbfd0-0b3c-4f57-851e-7aced6e69116" target="_blank" rel="noopener noreferrer">Total vehicles in Nepal</a><a style="color: #989898!important; text-decoration: none!important;" href="https://infogram.com" target="_blank" rel="nofollow noopener noreferrer">Infogram</a>Raju Chettri, CEO of the MAW Enterprises that imports Yamaha bikes in Nepal has a similar observation. He saw a decline in the annual sales of two wheelers from about 250,000 units to 190,000 right after the pandemic. But this year, the sales went up to 350,000 units.“There are two reasons behind this: pent-up demand and reduced use of public transport because of Covid fears,” Chettri says.There are <a href="https://www.nepalitimes.com/banner/poisoning-the-air-we-breathe/" target="_blank" rel="noopener noreferrer">more than 3.1 million two-wheeers in Nepal</a>, over one million of them in Kathmandu. They are adding to the capital’s foul air, as they are up to 10 times more polluting per passenger kilometre than buses and cars.<iframe style="border: none;" title="Total Motorbikes in Nepal" src="https://e.infogram.com/ea449cd7-2598-4cd4-8ae2-cd91858f9553?src=embed" width="700" height="700" frameborder="0" scrolling="no" allowfullscreen="allowfullscreen"></iframe><a style="color: #989898!important; text-decoration: none!important;" href="https://infogram.com/ea449cd7-2598-4cd4-8ae2-cd91858f9553" target="_blank" rel="noopener noreferrer">Total Motorbikes in Nepal</a><a style="color: #989898!important; text-decoration: none!important;" href="https://infogram.com" target="_blank" rel="nofollow noopener noreferrer">Infogram</a>Two-wheelers also emit invisible toxic gases like carbon monoxide, benzene and nitrous oxides, and increase the concentration of street-level ozone. Motorcycle exhaust may not be as visible as diesel exhaust, but they are highly poisonous — especially when there are so many of them. Besides exacerbating respiratory diseases, the gases are carcinogenic, causing cardiovascular diseases and Alzheimer’s.The solution is to shift rapidly to <a href="https://www.nepalitimes.com/banner/nepals-electric-transport-future-is-here/" target="_blank" rel="noopener noreferrer">cleaner electric vehicles</a>, not just for healthier air but also to meet Nepal’s net-zero pledge in Glasgow and to reduce the country’s burgeoning petroleum import bill.“The priority has to be on electric public transport and supporting infrastructure,” says environmentalist Tuladhar. “Electric buses are more expensive than diesel ones, so the government has to help with capital, and better manage Kathmandu’s public transport.”<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114091156/637203039c7e80680e0b27e5jpeg.jpg" alt="" width="720" height="480"><figcaption> </figcaption></figure>This week, Nepal opened its first electric charging station powered by solar panels for the Lumbini Development Trust. Similar charging stations can be set up for public and private vehicles in existing bus parks across Nepal and along highways. Sajha Yatayat which is procuring 40 electric buses is also trying to turn the former trolley bus terminal into a charging station.Shilshila Acharya of the Avni Center for Sustainability agrees that the priority should be on <a href="https://www.nepalitimes.com/banner/from-a-fossil-past-to-an-electric-future/" target="_blank" rel="noopener noreferrer">electrifying public transport</a> and encouraging bicycle lanes. She says, “Replacing cars with more cars even if electric only promotes consumerism. We have to give people reliable alternatives.”Kathmandu Valley Air Quality Management Action Plan held its first implementation committee meeting this week, during which it discussed lunching of a USAID-funded project for air pollution and a forecasting system with technical support from ICIMOD.“The problem of air pollution will take some time to be solved but we have started our homework,” says Indu Joshi of the Department of Environment. “At the moment, our biggest challenge is controlling open burning.”<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114091156/637203069c7e80680e0b27e6jpeg.jpg" alt="" width="2000" height="2625"><figcaption> </figcaption></figure>Apart from transport, garbage burning and biomass fuel for household heating and cooking are also contributors to Kathmandu’s dirty air. The problem is made worse in winter due to the <a href="https://www.nepalitimes.com/banner/how-weather-elevates-air-pollution-in-kathmandu/" target="_blank" rel="noopener noreferrer">Valley’s topography that traps surface pollution</a> in an inversion layer.Improper <a href="https://archive.nepalitimes.com/article/nation/a-load-of-rubbish-kathmandus-garbage-problem,4039" target="_blank" rel="noopener noreferrer">solid waste management in Kathmandu</a> means locals burn garbage by the riverbanks near residential areas — while, as studies show, segregation of waste at homes can reduce the city’s garbage volume by up to 80%.There is no other problem that is so directly linked with the health and economy of the country as urban air pollution. The <a href="https://www.nepalitimes.com/banner/nepal-lockdown-proves-air-quality-can-be-improved/" target="_blank" rel="noopener noreferrer">Covid-19 lockdown in 2020</a> is proof that Kathmandu can be cleaned up, it just needs <a href="https://www.nepalitimes.com/banner/dirty-politics-dirty-air/" target="_blank" rel="noopener noreferrer">the right leadership and the political will</a> to back it up.Says Shilashila Acharya: “Our policies on mobility and air pollution have to be people- and culture-centric, instead of focusing only on technology. We must build public pressure to force the politicians into action.”A public opinion poll in this paper just before the 2017 elections showed that a majority of Nepalis were concerned about the health impact of pollution. Since 2022 will be dominated by campaigning for the next election, this could be turned into the main criteria for candidates to win votes.

Breathing can kill you

<figure><img width="1198" height="1227" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016114/636d13819c7e80680e0a9926jpeg.jpg" alt=""/><figcaption>Photo: BIKRAM RAI/ NEPALI TIMES ARCHIVES</figcaption></figure>Nepal could lose Rs142 billion a year in wasted surplus energy if the <a href="https://www.nepalitimes.com/editorial/just-do-it/" target="_blank" rel="noopener noreferrer">Millennium Challenge Corporation (MCC)</a> project designed to upgrade the electricity grid and highways is not endorsed by Parliament.
Nepal is currently generating 2,000MW of <a href="https://www.nepalitimes.com/editorial/manpower-and-hydropower/" target="_blank" rel="noopener noreferrer">hydroelectricity</a> with an additional 2,500MW under construction. This figure will soar to 7,300MW by 2025 as per Nepal Electricity Authority (NEA) estimates.Presently, Nepal consumes 1,500MW of electricity during the peak season, which is increasing by 20% every year. At this rate, in the next four years, the peak demand will be at 2,600MW, which means there will be an excess of 4,700MW.  
Nepal can export this surplus power to India and there are already agreements in place to facilitate trade between the two countries, but the existing Dhalkebar-Muzaffarpur cross border <a href="https://www.nepalitimes.com/latest/mcc-damned-if-we-do-damned-if-we-dont/" target="_blank" rel="noopener noreferrer">transmission line</a> can only handle 800MW each way. 
“If Nepal is unable to sell excess energy, we will be losing Rs142 billion every year. At a time when we are lagging in infrastructure, we shouldn’t stop the MCC from being approved,” says Dinesh Shrestha, chair of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).
FNCCI, Confederation of Nepalese Industries (CNI), Nepal Chamber of Commerce, Federation of Contractors’ Associations of Nepal, Independent Energy Producers’ Association and Nepal-US Chamber of Commerce and Industry have submitted a memorandum to Prime Minister Sher Bahadur Deuba urging the government to stop delaying <a href="https://www.nepalitimes.com/latest/missing-links-in-nepals-mcc-debate/" target="_blank" rel="noopener noreferrer">the five-year compact</a> and implement it soon. 
This is the private sector’s second memorandum to the government in a month. The group also states that some 7,000 Nepalis will be employed during the construction phase of the MCC, which also includes the upgrade of arterial highways to facilitate efficient transportation. The FNCCI memo comes just before the arrival in Kathmandu on Wednesday of US Assistant Secretary for South and Central Asian Affairs, Donald Lu during which he is expected to discuss the MCC ratification with Prime Minister Deuba and other party leaders.It is an indication of the importance the US attaches to the project that Deputy Assistant Secretary for South ans Central Asian Affairs Kelly Keiderling also arrives in Kathmandu on Thursday. Deuba met US President Joe Biden at the COP26 Glasgow summit two weeks ago, and revealed that he and Maoist leader Pushpa Kamal Dahal had written jointly to the US government saying the MCC would be ratified. But the project has become such a political hot potato in Nepal that Dahal quickly backtracked, clarifying that he had only said that it needed amendments before being passed. A large chunk of the US-aided $500 million grant project is set aside to build the Kathmandu-Hetauda-Butwal 400KVa transmission line which will distribute electricity from existing and new hydropower plants on the Budi Gandaki, Trisuli, Kali Gandaki, Marsyangdi, Kosi, and Tamakosi corridors, and also connect to a high-capacity line to Gorakhpur so Nepal can sell surplus monsoon electricity to India.  
In fact, in anticipation of the MCC project being completed, the NEA <a href="https://www.nepalitimes.com/latest/india-nepal-sign-power-exchange-deal/" target="_blank" rel="noopener noreferrer">signed an agreement</a> with the state-run Power Grid Corporation of India (POWERGRID) for the Butwal-Gorakhpur cross border transmission line extension two months ago in September, ahead of MCC vice president <a href="https://www.nepalitimes.com/banner/mcc-ball-in-nepals-court/" target="_blank" rel="noopener noreferrer">Fatema Z Sumar's visit to Nepal</a>.
But the MCC, the biggest grant aid Nepal has ever received has become the victim of intense power struggle and political infighting within the country. It was first weaponised to unseat K P Oli and now <a href="https://www.nepalitimes.com/latest/mcc-row-rocks-nepals-ruling-coalition/" target="_blank" rel="noopener noreferrer">threatens to split the ruling coalition</a> led by Prime Minister Sher Bahadur Deuba. 
The project is seen by the critics as part of America’s Indo-Pacific Strategy to counter China’s Belt Road Initiative. The anti-MCC rhetoric has gained such momentum that the public is convinced it supersedes Nepal’s Constitution and is anti-national, forcing even the staunch supporters from speaking in its favour.
Adds FNCCI’s Dinesh Shrestha: “The MCC is crucial for Nepal’s energy sector and <a href="https://www.nepalitimes.com/editorial/knowing-whats-good-for-nepal/" target="_blank" rel="noopener noreferrer">is to our benefit</a>. Moreover, this is a grant, not a loan. Further delaying and cancelling the compact will <a href="https://www.nepalitimes.com/latest/mcc-row-damages-nepals-credibility/" target="_blank" rel="noopener noreferrer">tarnish Nepal’s image and credibility</a> in the world community.”
MCC or no MCC, one thing is for sure. Nepal must build transmission lines and upgrade its electricity grid one way or the other so as not to waste surplus energy it is set to generate in the near future. 
Alternatively, experts say, the government must work immediately to <a href="https://www.nepalitimes.com/editorial/good-cop-bad-cop/" target="_blank" rel="noopener noreferrer">electrify transport and cooking</a> for domestic consumption of surplus power and reduce its import bill on petroleum products and LPG.

The cost of no MCC

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022111016110/636d12189c7e80680e0a98bajpeg.jpg" alt="" width="664" height="450"/>Nepal Rastra Bank’s report last month was badly timed — it was a bad idea to sound a warning that Nepal is going belly up just as the country was grinding to a halt for a month of Dasain-Tihar-Chhat festivals.The indicators were ominous: Nepal’s foreign currency reserves fell to $11.1 billion in September, much below the figure for last year and only enough to pay for 8 months of imports. There has been a 76% increase in the import bill to a record Rs352 billion last fiscal year — despite a pandemic slowdown.In the first two months of this fiscal year, <a href="https://www.nepalitimes.com/banner/defying-predictions-nepals-remittances-still-high/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/defying-predictions-nepals-remittances-still-high/&amp;source=gmail&amp;ust=1636429484700000&amp;usg=AFQjCNHKGPEf-eEDtwjn0f_p_HMzrqYQGw">overseas remittances that had held steady despite the pandemic</a> went down by 6.3% to Rs155 billion.One of the holy days of Tihar last week was dedicated to Goddess Laxmi, and many prayed for individual wealth and prosperity. We should have been praying for the country’s economic survival.Just those two figures for falling remittances and rising imports should have been enough to sound the emergency alarm. But fatalism is so steeped in Nepal’s governance culture that we hope things will sort themselves out.After all, if things go really wrong, Pashupatinath will come to the rescue. But the Lord Protector of Nepal must be shaking his head at the disarray of the state.We have come to expect lack of accountability in self-dealing politicians and elected officials, but the judiciary used to be relatively untainted and independent.The violation of the principle of separation of powers by <a href="https://www.nepalitimes.com/latest/what-is-happening-to-nepals-supreme-court/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/what-is-happening-to-nepals-supreme-court/&amp;source=gmail&amp;ust=1636429484700000&amp;usg=AFQjCNG-raVzHQQBlpr5oUCza97BMC7wkA">Chief Justice Cholendra SJB Rana</a> and the mutiny in the Supreme Court has dragged the judiciary also into dysfunction.With the court system paralysed, Rana has been reported to be looking for a ‘graceful exit’, and apparently proposed a leave of absence until his term expires. The <a href="https://www.nepalitimes.com/latest/who-wants-early-elections-and-why/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/who-wants-early-elections-and-why/&amp;source=gmail&amp;ust=1636429484700000&amp;usg=AFQjCNHWRzSQmjSbl2C65i3KvLsEqN0uUA">top leadership</a> of the main parties have been silent about the fate of Chief Justice Rana, who after all was instrumental in overturning K P Oli’s dissolution of the Lower House which <a href="https://www.nepalitimes.com/here-now/nepal-court-orders-deuba-to-succeed-oli/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/nepal-court-orders-deuba-to-succeed-oli/&amp;source=gmail&amp;ust=1636429484700000&amp;usg=AFQjCNHI-krjS3d3YX690askSFTe2LB0vA">put Deuba in office</a> on 14 July.They also have all kinds of pending cases in the Supreme Court, and do not want antagonise a Chief Justice in case he survives this crisis. Rana has reportedly used the holidays for intense political lobbying through emissaries. That would likely entail a quid pro quo over not starting an impeachment process in Parliament in return for future favours.Whether Rana remains chief justice or is forced to step down is mixed up with politics — after all it was the failure of politicians to sort out their power struggles in Parliament that allowed the judiciary to have such a magnified role in who gets to be in government and who doesn’t. There is so much corruption and vested interest in the political nominations to the Supreme Court that just removing Chief Justice Rana will not stem the rot.Besides, the real emergency Nepal faces today is not about who succeeds Rana or if the coalition remains intact till elections, but the fate of the economy.Remittances pay for imports, and inflows are down and imports are up. Hard currency reserves to finance <a href="https://www.nepalitimes.com/editorial/blood-sweat-tears/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/editorial/blood-sweat-tears/&amp;source=gmail&amp;ust=1636429484700000&amp;usg=AFQjCNH52fe2VOfxxaDWmxbqr8rkJcg-Hg">Nepal’s imports, mainly of petroleum</a>, food and other items are falling. Exports did go up, but the trade deficit rose to Rs270 billion in the past two months.Besides, Nepal’s main item of export is processed palm and soya oil that depend on massive imports of raw material. A <a href="https://www.nepalitimes.com/latest/nepal-less-and-less-able-to-feed-itself/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/nepal-less-and-less-able-to-feed-itself/&amp;source=gmail&amp;ust=1636429484700000&amp;usg=AFQjCNHt2gsBj5b0itg1RhxrL9unH8Y3-Q">growing asymmetry between imports and exports</a> means the balance of payments is now Rs83.4 billion — double what it was in July.Prime Minister Sher Bahadur Deuba pledged at COP26 to reduce Nepal’s carbon footprint, and Energy Minister Pampha Bhusal is pushing for a transition to electric transport. They seem to have finally realised that having a petroleum import bill more than all exports combined is not sustainable.Destructive post-monsoon rains will reduce rice harvests by 20%, which means increased food import. What will we use our remaining foreign exchange reserves for: to buy food or fuel? It might to be an either/or.There does not seem to be a sense of urgency about this emergency in the Finance Ministry. It must act immediately to increase taxes on luxury items, encourage local agriculture production and invest heavily in infrastructure to create local jobs.The economic crisis is a result of political neglect and disarray. Trouble is: we cannot wait for the politics to sort itself out to fix the economy this time.

Urgency about Nepal’s economic emergency

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110161132/636d19939c7e80680e0ac827jpeg.jpg" alt="" width="664" height="450"/><figcaption></figcaption></figure>Even as Nepal tries to recover from the impact of the pandemic, the country’s economic indicators released this week by the central bank show dismal performance in the first two months of the fiscal year.The report by the Nepal Rastra Bank shows that Nepal’s foreign currency reserves fell to $11.1 in mid-September, 6.6% below the figure for last year, this is enough to pay for only 8 months of total imports.Even more worrying is that <a href="https://www.nepalitimes.com/banner/defying-predictions-nepals-remittances-still-high/" target="_blank" rel="noopener noreferrer">overseas remittances that had held steady despite the pandemic</a> for the past two years have now started declining. Nepalis abroad sent home Rs155 billion in the past year, which is 6.3% below the same period last year.Despite the pandemic, remittances had risen by 8.1% in fiscal year 2019-2020. Experts attributed that to overseas workers sending money home as the economic crisis hit families back home, and not necessarily due to higher earnings.The concurrent decrease in foreign currency reserves to finance <a href="https://www.nepalitimes.com/editorial/blood-sweat-tears/" target="_blank" rel="noopener noreferrer">Nepal’s imports, mainly of petroleum</a>, food and other commodities, is seen as an indicator of an impending economic crisis. The main reason for the current downturn is shrinking remittances, which prop up Nepal’s economy.Indeed, compared to 2019-2020, the past year has seen a steep 76% increase in imports to a record Rs352 billion, mainly due to a rise in the import of petroleum products, gold, silver and other items, according to Rastra Bank figures.Even though exports went up by 115% in the same period to Rs44.4 billion, it did not put much of a dent on the trade deficit which has risen to Rs270 billion in the past two months of the fiscal year. This represents a 71% increase in the trade gap compared to last year.The <a href="https://www.nepalitimes.com/latest/nepal-less-and-less-able-to-feed-itself/" target="_blank" rel="noopener noreferrer">growing asymmetry between imports and exports</a> means that the country’s balance of payments situation is now Rs83.4 billion in the red — up from Rs38.7 billion in July.With the alarm bells ringing, the government has drastically reduced the amount of money Nepalis can officially exchange before traveling abroad from $1,500 to $200-500. This week, further austerity measures were announced, including a ban on the purchase of vehicles for official use.The negative trend in economic indicators could not have come at a worse time. Just as the country was recovering from the <a href="https://www.nepalitimes.com/banner/the-real-cost-of-nepals-second-wave/" target="_blank" rel="noopener noreferrer">economic impact of the pandemic</a>, it was hit by extreme rainfall this month which killed more than 110 people across the country, and destroyed up to one-third of the country’s ready to harvest rice crop.The Ministry of Agriculture estimates that nearly 90,000 hectares of rice fields were severely damaged by <a href="https://www.nepalitimes.com/latest/post-monsoon-rain-ruins-nepals-crops/" target="_blank" rel="noopener noreferrer">the unseasonal post-monsoon rains</a>, and paddy losses will amount to more than Rs8 billion. Lumbini Province is said to have suffered the worst, with more than half of the initially reported damage nationwide.The unprecedented destruction comes just as farmers and officials were optimistic about a healthy rice harvest because of a healthy monsoon season. Rice is such an important component of Nepal’s economy that it will impact on the GDP, economic growth, and have a knock-on effect on the trade deficit because more rice will now need to be imported.Last year Nepal produced 5.6 million tonnes of rice from 1.4 million hectares of paddy fields, up 1.3% from the previous year. However, rising income levels of Nepalis has also meant that rice consumption is growing, and the country had to import Rs 51 billion worth of rice last year, compared to only Rs23 billion in 2019.Analysts say the <a href="https://www.nepalitimes.com/here-now/are-nepalis-really-eating-more-rice/" target="_blank" rel="noopener noreferrer">sharp increase in rice imports</a> cannot be attributed only to rising consumption, explaining it by the rise in demand from Nepal’s breweries and the dramatic rise in domestic beer consumption.

Nepal’s remittances, forex reserves drop

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141156/636d03419c7e80680e0a36c1jpeg.jpg" alt="" width="1400" height="1190"/><figcaption>Illustration: DIWAKAR CHETTRI</figcaption></figure>In 1763, Scottish inventor James Watt was given a steam engine to repair. Developed by Thomas Newcomen, it would turn water into steam to run a water pump. The Newcomen pump used the same chamber for heating and cooling steam, and was slow and consumed lots of coal. It was expensive.Dagogo Altraid in his book New Thinking: From Einstein to Artificial Intelligence, the Science and Technology That Transformed Our World tells us that Mr Watt conceptualised an improvement during a Sunday afternoon walk in Glasgow. He proposed a separate chamber that would condense the steam. It would improve efficiency and reduce cost.Subsequently his steam-run piston connected to levers and cogs would move wheels in locomotives, ships and textile factories. James Watt took a walk, and the world changed forever -- the first industrial revolution was set in motion.About eighty years later the mass extraction, processing and commercial use of petroleum to fuel these engines began in the United States. The second industrial revolution was on its way. The availability of petroleum products helped develop the internal combustion engine, improving mobility on a far greater scale than steam power – later revolutionising the use of automobiles, ships and aircraft.Energy generated from coal, petroleum, diesel and gas thus industrialised the West, and became the prime mover of its socio-economic system, and subsequently spread to every country in the world which followed the same development path.Human beings had unprecedented mobility, the world achieved progress, but use of fossil fuels over the next two centuries and half accumulated carbon dioxide in the atmosphere increasing its concentration from less than 300 parts per million (ppm) in the pre-industrial era to 418 ppm today. This and other greenhouse gases trapped more heat and amplified anthropogenic climate change.In the early 19th century scientists were already examining the relation between the sun, earth and atmosphere. French physicist Joseph Fournier in the 1820s postulated that the Earth's atmosphere might face a ‘greenhouse effect’. British physicist John Tyndal later explored this idea further, and in 1859 demonstrated that a greenhouse effect would trap the sun’s reflected radiation in the earth’s atmosphere – increasing the average surface temperature of the planet.The First World Climate Conference organised by the World Meteorological Organisation in 1979 had formally identified increased atmospheric concentrations of greenhouse gases as the leading cause of global warming. The <a href="https://www.nepalitimes.com/banner/un-climate-report-declares-planetary-emergency/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/un-climate-report-declares-planetary-emergency/&amp;source=gmail&amp;ust=1632793832912000&amp;usg=AFQjCNG5KO1XmWfvCd3JQIreEIvlrvl09w">Intergovernmental Panel on Climate Change (IPCC)</a> established in 1988 to study climate change and its impact has been warning for the past three decades that a hotter planet posed a threat to humans and other life forms.It has been known for decades that a warming earth will disturb the water cycle resulting in frequent heavy precipitation, floods, and drought, cyclonic storms, and coastal inundation. Heat waves and forest fires would be more devastating. In fact, the IPCC’s Assessment Report 6 (AR6) issued in August 2021 reported that from 2011-2020 the global surface temperature was already ~1.1oC higher than the baseline of 1850-1900.The Paris Accord of 2015 aimed to limit average temperature rise from 1.5 to 2 oC  warmer compared to pre-industrial levels to minimise the risk of <a href="http://archive.nepalitimes.com/article/editorial/climate-climax,3651" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/article/editorial/climate-climax,3651&amp;source=gmail&amp;ust=1632793832912000&amp;usg=AFQjCNGg1f7MjDygQNSsOoABK_DhRH9UBw">a planetary climate disaster</a>. Member countries agreed to work on Nationally Determined Contributions (NDCs) that would set their own targets for reducing greenhouse gas emissions by cutting coal and petroleum use.Even these pledges will not meet the 1.5 to 2oC Paris target, warned the United Nations Framework Convention on Climate Change (UNFCCC) in a synthesis report on NDCs. In fact, at the current rate of emission reduction, global average temperature is unlikely to be limited to 2oC increase by 2050. The report warned that national emission reductions pledged in the NDCs should increase by an additional 80% if the target is to be met.If the current level of emission continues, by 2100 the world will be at least 2.7oC warmer. Earlier, the IPCC had predicted that the 1.5o C threshold would actually be exceeded in 2040. Sadly, institutional barriers, path dependencies, lack of actions, and denying of climate change science in developed countries act as barriers to faster decarbonisation.For Nepal, as elsewhere in the world, the loss and damage from the climate emergency is already a part of daily life. <a href="https://www.nepalitimes.com/banner/first-drought-then-downpour/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/first-drought-then-downpour/&amp;source=gmail&amp;ust=1632793832912000&amp;usg=AFQjCNFpzE9obZKPOn8iozib-zgjtAvfKA">Droughts</a> leading to unprecedented <a href="https://www.nepalitimes.com/banner/wildfires-ravage-nepal-mountains/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/wildfires-ravage-nepal-mountains/&amp;source=gmail&amp;ust=1632793832912000&amp;usg=AFQjCNFAZV0Kauf850haiih8DYv_r_QDxQ">wildfires</a>, record-breaking rainfall, <a href="https://www.nepalitimes.com/banner/disasters-in-nepal-come-in-waves/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/disasters-in-nepal-come-in-waves/&amp;source=gmail&amp;ust=1632793832912000&amp;usg=AFQjCNG1DVkUqSSJ15kG7LZ_omJrvp0M0Q">extreme weather events</a>, <a href="https://www.nepalitimes.com/banner/on-thin-ice-in-the-khumbu/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/on-thin-ice-in-the-khumbu/&amp;source=gmail&amp;ust=1632793832912000&amp;usg=AFQjCNGFcAtH18vGuvAx8RPbhAWSOV431Q">receding snowlines</a>, shrinking glaciers, and <a href="https://www.nepalitimes.com/opinion/nepals-silent-emergency-springs-going-dry/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/opinion/nepals-silent-emergency-springs-going-dry/&amp;source=gmail&amp;ust=1632793832912000&amp;usg=AFQjCNFsextCf2VRpjOw-ROgboe7cUZvKg">springs going dry.</a> In Glasgow, world leaders have to commit to drastic reductions in greenhouse gas emissions, and pledge help to countries like Nepal to cope with the climate crisis.It is indeed symbolic that the UN’ Climate Change summit (called COP26) in November is being held in Glasgow, the same city where James Watt took a walk during which he came up with the idea that made more efficient coal fired steam engine 258 years ago. Perhaps world leaders should also take a walk while in Glasgow to come up with an urgent plan to undo the planetary crisis unleashed by Watt’s steam engine. Time has run out.<a href="https://www.nepalitimes.com/opinion/nepals-silent-emergency-springs-going-dry/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/opinion/nepals-silent-emergency-springs-going-dry/&amp;source=gmail&amp;ust=1632793832912000&amp;usg=AFQjCNFsextCf2VRpjOw-ROgboe7cUZvKg">Ajaya Dixit</a> is Senior Advisor of Kathmandu based ISET-Nepal. He contributes this regular commentary Climate for Change in Nepali Times.

Ajaya Dixit

Back to Glasgow, where it all began

<figure><img width="1400" height="933" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141116/636a57529c7e80680e0547d7jpeg.jpg" alt=""/><figcaption>A dengue patient being treated from inside a mosquito net at Teku hospital, Kathmandu. Photo: MONIKA DEUPALA</figcaption></figure>An unusually wet monsoon, increased human mobility and <a href="https://www.nepalitimes.com/editorial/climate-damage/">climate change</a> are reasons why this year’s dengue outbreak in Nepal has been the worst so far. Already, six people have lost their lives and more than 8,000 are receiving treatment. Over 80,000 have been infected, but control efforts have been sorely lacking.The newest epidemic to hit Nepal has struck ministers, politicians, businessmen and doctors, drawing attention to  tropical diseases migrating to higher altitudes. Early rains provided ideal breeding grounds for disease-carrying mosquitoes that are migrating up the mountains as the earth heats up. “Vector insects are moving up the Himalaya as warming increases, and so are the diseases they carry. Climate change is leading to changes in the geographic pattern of diseases,” said Meghnath Dhimal of the Nepal Health Research Council. “We need to adjust to this new reality and be prepared for more frequent outbreaks.”Read Also:<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=32892&amp;preview=true" target="_blank" rel="noopener">Tree-mendous,</a> Peter Gill<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=32877&amp;preview=true" target="_blank" rel="noopener">It's a jungle out there</a>, Ajaya Dixithttps://www.youtube.com/watch?v=tz31WHLpMBo&amp;feature=youtu.beMaria Diuk-Wasser of the Yale School of Public Health confirmed the trend in a recent article in the journal Scientific American: ‘The direct effects of temperature increase are an increase in immature mosquito development, virus development and mosquito biting rates, which increase the contact rates with humans.’The government has been slow to act, despite being in the habit of blaming everything and anything on climate change. The <a href="https://www.nepalitimes.com/opinion/nepals-silent-emergency-springs-going-dry/">climate emergency</a> is just the latest crisis to hit Nepal, making all our pre-existing problems worse.And while mitigation efforts to reduce emissions in Nepal are not going to make a difference globally, given our negligible contribution to atmospheric carbon, switching to <a style="background-color: #ffffff; letter-spacing: 0.15px;" href="https://www.nepalitimes.com/opinion/no-smoke-without-fire/">renewable energy sources</a> is good for both the economy and ecology.Read Also:<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=32887&amp;preview=true" target="_blank" rel="noopener">Trees, politics and greed,</a> Mukesh Pokharel<a href="https://www.nepalitimes.com/?p=32836&amp;preview=true" target="_blank" rel="noopener">Mustn't blame everything on Climate Change,</a> Editorial <img width="200" height="200" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108141116/636a57569c7e80680e0547d8jpeg.jpg" alt="">Nepal is importing Rs20 billion worth of electricity annually from India to meet generation shortfall. Power from these coal-fired thermal plants in Bihar has doubled the average Nepali’s carbon footprint, and has increased our trade imbalance with India.Read Also:<a href="https://www.nepalitimes.com/?p=32872&amp;preview=true" target="_blank" rel="noopener">Protecting Kathmandu’s historic roofscape</a>, Anne Feenstra<a href="https://www.nepalitimes.com/?p=32849&amp;preview=true" target="_blank" rel="noopener">Tourism, aviation, and carbon,</a> Sanghamitra SubbaNepal’s <a href="https://www.nepalitimes.com/banner/from-a-fossil-past-to-an-electric-future/">petroleum consumption is doubling thanks to LPG use</a>, expansion of the road network and increased vehicle imports. The Nepal-India, cross-border petroleum pipeline inaugurated this week is likely to deepen the country’s addiction to fossil fuels.Adaptation and mitigation should go hand-in-hand in Nepal, so that the country is prepared for extreme weather events caused by climate change on the one hand, while reducing petroleum imports to reduce air pollution, protect public health and narrow the trade gap, on the other.A new study has shown that Nepal’s total forest cover increased by 50% in the last 25 years — largely due to outmigration of people to the cities and overseas, as well as the success of the community forestry program. However, the government is trying to wrest back control of forests from local user groups, and infrastructure projects like Nijgad airport could reverse these gains.This issue of Nepali Times is part of <a href="https://www.nepalitimes.com/latest/world-joins-to-cover-climate/" target="_blank" rel="noopener">Covering Climate Now</a>, a global collaboration of more than 250 newsRead Also:<a href="https://www.nepalitimes.com/?p=32868&amp;preview=true" target="_blank" rel="noopener">Mosquitoes move up mountains as the earth warms</a>, Sonia Awale<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=32864&amp;preview=true" target="_blank" rel="noopener">The Third Pole is warming faster than expected</a>, Kunda Dixit<a style="background-color: #ffffff; outline: 0px; font-weight: bold; letter-spacing: 0.01em; font-size: 15px;" href="https://www.nepalitimes.com/?p=32856&amp;preview=true" target="_blank" rel="noopener">Climate Summit leads packed UN agenda,</a> Thalif Deen

Climate-health emergency

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171140/636934ee9c7e80680e03e027jpeg.jpg" alt="" width="1400" height="936"/><figcaption>THEN AND NOW: The denuded slope above Namche Bazar in 1983, and the new pine forest.</figcaption></figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171140/636934f29c7e80680e03e028jpeg.jpg" alt="" width="1200" height="870">The sound of yak steps on cobble stone streets and their jingling bells in Namche Bazar were familiar sounds. What was less familiar 35 years later was the constant clatter of helicopters overhead. This contrast between old and new was an ever-present theme during a recent trip to the Khumbu — a return journey to the region after my first visit in 1983.There are many more trekkers, and new hotels to accommodate them. The Everest Base Camp trek remains the main attraction with guides and porters carrying gear for primarily European and American visitors. I had come here in 1983 to study the overuse of firewood, and the resulting deforestation. I lived with a Sherpa family that ran a small trekking lodge in Namche, and firewood was their main source of energy for cooking and heating. Without proper chimneys, smoke filled the living spaces and exposed residents, especially children, to respiratory problems.The chief warden of the Sagarmatha National Park then was Mingma Norbu Sherpa, one of Nepal’s Conservation Heroes who died in 2006 in the helicopter crash in Ghunsa. He took the leadership to protect the forests, and Brot Coburn, a UNESCO consultant, helped build the first micro-hydroelectric plant below Namche that provided electricity for lighting and some cooking 16 hours a day.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171140/636934f59c7e80680e03e029jpeg.jpg" alt="" width="1400" height="1050"><figcaption> </figcaption></figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171140/636934f89c7e80680e03e02ajpeg.jpg" alt="" width="640" height="480">The favourable energy shift towards forest protection and electricity picked up momentum from the late 1990s with the introduction of metal stoves that used yak dung for heating. At the same time, LPG cylinders started appearing for home cooking. Local hydro capacity was expanded for more sustained use in lighting and electrical appliances.Thirty-five years later, there has been dramatic re-growth of forests. Areas above Namche that were virtually barren in 1983 now have tall pine forests. Trails from Namche to Phortse and Thame have robust stands of diverse tree species. Firewood use is much reduced due to the high cost of local labour to collect it, and because propane is a cheaper fuel source. Reductions in livestock herding and the success of community forestry have helped revive ecosystems.Read also:<a href="https://www.nepalitimes.com/?p=17155&amp;preview=true" target="_blank" rel="noopener">No smoke without fire</a>, Ajaya Dixit<a href="https://www.nepalitimes.com/here-now/everest-garbage-caravan/" target="_blank" rel="noopener">Everest Garbage Caravan</a>, Sonia Awale<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171140/636934fb9c7e80680e03e02bjpeg.jpg" alt="" width="800" height="1196"><figcaption> </figcaption></figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171140/636934fe9c7e80680e03e02cjpeg.jpg" alt="" width="800" height="1067">In the early 1980s, communication to and from the Khumbu relied on runners transmitting messages by foot, a single telephone line at the police station in Namche, and a postal drop at the Khunde clinic. Today everyone has a cell phone. Porters carrying incredibly heavy loads chat with friends and family. Trekking lodges advertise WiFi service with more emphasis than their hotel rooms.At the monastery in Thame, a young monk in a maroon chuba and matching down jacket showed me hand lettered 600-year old books with ancient Tibetan calligraphy. He interrupted our conversation to take a call on his smartphone.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171140/636935009c7e80680e03e02djpeg.jpg" alt="" width="1400" height="936"><figcaption> </figcaption></figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171140/636935039c7e80680e03e02ejpeg.jpg" alt="" width="1400" height="1050">One troubling trend is the increasing reliance on long mule trains to transport supplies. Travelling in trains of 20 or more, they stir up dust on the trail and leave an overpowering stench of waste. Locals are discussing a proposal to build a cargo cable car from Lukla to Namche.The Sagarmatha Pollution Control Committee is <a href="https://www.nepalitimes.com/here-now/everest-garbage-caravan/" target="_blank" rel="noopener">removing garbage and human waste from Mt Everest</a>. Base Camp is supposed to be cleaner, and recycling bins are common along the trails. Yet, there is still extensive litter because packaging waste is accumulating faster than it can be disposed of.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107171140/636935079c7e80680e03e02fjpeg.jpg" alt="" width="1000" height="587">Meanwhile, Nepal is racing to develop its hydroelectric capacity, and one consequence could be that rivers flowing from the Sagarmatha National Park could be dammed. This World Heritage Site deserves permanent protection.How residents, local and national authorities manage the Khumbu’s environmental and energy resources amid pressures of growing tourism and hydro development will determine if the region can have a sustainable future.Adam Stern is an American environmentalist based in California.Read also:<a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/khumbu-then-and-now-global-warming-climate-change,4017" target="_blank" rel="noopener">Khumbu then, and now</a>, Kunda Dixit<a href="http://archive.nepalitimes.com/news.php?id=16562#.W__EZNszbIV" target="_blank" rel="noopener">Defrosted</a>, Kunda Dixit

More trekkers, more trees

Born in Khandbari in eastern Nepal, Parashuram Pathak helped his family around the farm, sold what they grew in the market and lent a hand in the kitchen.&nbsp; After working as a chef in Dubai, San Francisco, Denmark, Australia, and on cruise ships, Pathak has now brought back what he has learnt to the Tusa Restaurant in Bhaktapur that opened on Nepali New Year on 13 April. Tusa uses fresh indigenous ingredients from various parts of Nepal, and fuses them with international methods to produce unique dishes. Pathak is a global Nepali, and is introducing global Nepali cuisine to his homeland. Pathak left an executive chef job to intern at three-Michelin-starred Noma in Denmark, named the best restaurant in the world five times. Noma runs on a philosophy of foraging to rediscover wild local ingredients, and Tusa’s mission is similarly noble: preparing dishes with Nepali ingredients using modern techniques and equipment. “We are taking Nepali food beyond dal-bhat and momo, we are taking it international,” Pathak said on the phone from Sydney. Read also: <a href="https://nepalitimes.com/here-now/nepali-baker-rises-to-the-top-in-denmark">Denmark’s best baker is a Nepali</a>, Vishad Onta  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240419180424_1312bc016cbb2fe59c6d4a78d1f8b463af4a10b3f79559a2405fd54ea5b3197a.jpg" data-media-id="editor_1" data-image-id="20240419180424_1312bc016cbb2fe59c6d4a78d1f8b463af4a10b3f79559a2405fd54ea5b3197a" data-rendition-name="original" width="801" height="802" loading="lazy" alt="The return of the natives Page 12 NT #1208"> <figcaption>Photo: PARASHURAM PATHAK/FACEBOOK</figcaption> </figure>  Pathak’s team in Nepal includes chefs Rupesh Bohara and Sagar Shrestha who have also worked extensively in Dubai and Australia, and share his vision. The three realised they shared the same dream, and over the past five years have travelled across Nepal to research their menu, collecting ingredients and ideas from homestays, food carts, and nature. The team then scouted for Nepal’s best architect, and zeroed in on Bhaktapur-based heritage conservationist Rabindra Puri who designed the Malla-era house for Tusa in the Nag Pokhari neighbourhood. Bohara and Shrestha have moved back to Nepal for good, and Pathak arrives in September. “I made dishes from all over the world, but when someone asked what Nepali food was like, I had no answer,” says Bohara, “I came back to find out.” &nbsp;“You can get citizenship, a green card, big houses and cars, but where is the self-satisfaction?” asks Shrestha, who has a red-and-blue chef’s knife with the sun and moon of the Nepali flag tattooed on his right forearm.&nbsp; Read also:<a href="https://nepalitimes.com/diaspora-diaries/the-return-of-a-master-baker"> The return of a master baker</a>, Raju Pakhrin  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240419180424_c601264463e5a28d4e71a46781f340a53619a08d00949a7aaebfef84e75a319d.jpg" data-media-id="editor_3" data-image-id="20240419180424_c601264463e5a28d4e71a46781f340a53619a08d00949a7aaebfef84e75a319d" data-rendition-name="original" width="6000" height="4000" loading="lazy" alt="The return of the natives Page 12 NT #1208"> <figcaption>Photos: TUSA</figcaption> </figure>  Bohara and Shrestha passionately recount stories of their trips across Nepal, speaking of generous lodge owners who introduced them to local ingredients. Tusa can seat 28, and dining here is a sensory experience with a live kitchen. The chefs cook and place dishes on a large granite countertop with induction sections built in. Behind the counter is a grill on an indoor fire with pulley control to adjust the fire. Everything that can be made in Nepal — chairs and tables, ceramic dishes, the grill — is locally sourced. The executive kitchen/laboratory is downstairs. It is spacious, spotless, and contains appliances rarely seen in restaurants here: a sous vide machine that cooks vacuum-sealed packets at consistent temperatures, and a dehydrator for sisnu nettles. A fresh batch of deep purple kimbu (mulberry) muffins has just come out of the oven. Fridges have dry-aged fish and marigold kombucha. Fermentation seems to be the theme at Tusa, and Pathak explained: “Fermentation takes away the natural sugars in food, leaving behind a true, umami taste.”&nbsp; Read also: <a href="https://nepalitimes.com/here-now/vikings-khukri-passion">Viking's khukri passion</a>, Alisha Sijapati  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240419180424_c59e2b4230864f646bc36108adb951e95ec85da6156740294b1ec715b86acf89.jpg" data-media-id="editor_5" data-image-id="20240419180424_c59e2b4230864f646bc36108adb951e95ec85da6156740294b1ec715b86acf89" data-rendition-name="original" width="5895" height="3930" loading="lazy" alt="The return of the natives Page 12 NT #1208"> </figure>  Tusa itself means ‘shoot’ in Nepali, and can be a dish of fermented bamboo shoots. The restaurant serves a tasting menu with six courses, plus surprises. It starts with a fermented potato and millet roti with charred green garlic and tomato chutney. The bread tastes like a mix of alu paratha and kodoko roti with a satisfying, mild flavour. The chefs do not show off, and overdo it. Dishes are tastefully simple and faithful, a theme that runs through the meal. The second course is a filet of fish charred on one side and placed in a broth. It is delicate and smokey, and does not mask the character of the fish.&nbsp; The next is Batuk Chukauni, a Magar dish with a lentil snack and a yoghurt-based potato achar. The batuk, made of lentil batter, is light and the chukauni has potatoes and peas. Read also: <a href="https://nepalitimes.com/here-now/money-is-not-everything-but-you-need-money-for-everything">"Money is not everything, but you need money for everything"</a>, Rohit Shrestha  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240419180424_e3f51228ff792e8d4297f81f8e67d138584e922ae035d131977494219e5e85c5.jpg" data-media-id="editor_7" data-image-id="20240419180424_e3f51228ff792e8d4297f81f8e67d138584e922ae035d131977494219e5e85c5" data-rendition-name="original" width="1333" height="1000" loading="lazy" alt="The return of the natives Page 12 NT #1208"> <figcaption>Batuk Chukauni. Photo: VISHAD ONTA</figcaption> </figure>  Next is a skewer of jackfruit with a tamarind and mustard glaze that has the texture of a slice of sausage and melts in the mouth. Then comes the first off-menu item: a steak of watermelon, glazed and grilled, tasting sweet, sour and smokey. After that a palate cleanser sorbet made with laligurans syrup adorned with a frozen candied rhododendron petal. Finally the main course: barbeque chicken and chyakla coarse corn grits. The chicken has been brined, marinated, cooked sous-vide and seared on the grill. The delicate consistency of the chicken stands out. Desert is a smooth, creamy cheesecake that uses the local juju-dhau yoghurt. And the last course is a moist, moss-green sisnu cake laced with mulberry jam and cream.&nbsp; There is nothing gimmicky about Tusa. It is the coming together of skilled Nepalis with international exposure who have mixed what they have learnt abroad with the flavours of home.&nbsp; The tasting menu is Rs3,500, and it may take some time before Nepalis develop a predilection for some of its items. The chefs are excited, vindicated, and relieved. Coming back to Nepal, uprooting successful careers abroad to take a chance on Nepal must not have been easy.&nbsp; Tusa had a soft launch on New Year’s day with Kathmandu-based diplomats. Australian Ambassador Felicity Volk was one of them, and wrote on a Facebook post: ‘Chefs who honed their skills in Australia and returned to Nepal to give back. We call it fine dining, they call it #cominghome.’ Read also: <a href="https://nepalitimes.com/multimedia/the-baker-of-barpak">The baker of Barpak</a>, Tara Aryal Pandey

The return of the natives

For a year or two after the 25 April 2015 earthquake, the residents of Kathmandu were too terrified to return to their high-rise apartments. None of them collapsed in the 7.8 disaster, but many sustained serious structural damage. &nbsp;
Fast forward nine years, and they have all but forgotten that frightful day. Kathmandu is back to building substandard structures, even as land prices drive developers to build taller.&nbsp;
With no more space to spread horizontally, Kathmandu is going vertical. But structural engineers say most of the high rises do not take into account seismicity, soil condition, construction methods, quality of raw materials, fire hazard, and search and rescue in collapsed concrete structures.
“Much of our focus since the 2015 earthquake has been on building and construction, but not as much on where we are building,” warns Sangeeta Singh, Professor of Urban Planning and Deputy Director of Centre for Disaster Studies at the Institute of Engineering.
Read also: <a href="https://nepalitimes.com/banner/in-a-disastrous-state">In a disastrous state</a>, Sonia Awale
She adds: “Kathmandu is not really suited for high-rises. We have to first test the condition of the soil, but building permits are being issued without this fundamental step.”
Kathmandu Valley is a former lakebed with soft topsoil prone to liquefaction and excessive shaking, as seen during the 1934 megaquake. Many ruptures tore up the surface in 2015. &nbsp;
During an earthquake, the rock layers below Kathmandu ring like a bell and the vibrations on the surface take between 0.5 to 2 seconds for one oscillation. Buildings also vibrate, but at different frequencies depending on their height, construction material, and arrangement of their structural components.
At five floors, the vibration period of a building is 0.5 seconds, which is the same as that for Kathmandu Valley, and this could cause more damage, says structural engineer Surya Narayan Shrestha at the National Society for Earthquake Technology - Nepal (NSET).
“Building anything that is five storeys or higher in Kathmandu needs special design and structural considerations,” says Shrestha.
Read also: <a href="https://nepalitimes.com/editorial/shaking-things-up">Shaking things up</a>, Editorial
Technologies exist to reduce seismic risk in high-rises, and these are used in earthquake-prone cities like Tokyo, Los Angeles, Jakarta or Mexico City.&nbsp;
Base isolation, for example, separates the vibration of the land and the building, reducing damage from soil-building resonance. Base isolators move and stretch under pressure, absorbing much of an earthquake's impact by reducing swaying and shaking. &nbsp;
Seismic dampers change the pattern of vibration altogether, dissipating energy as vibrations move across a structure. But these are all expensive technologies, and none of the high-rises in Kathmandu use them.
However, Nepali engineers who can help with technology transfer are working in the field in Nepal and overseas. Kathmandu’s high-rises are already very expensive, and making them seismic-resistant would be an incremental cost.
Read also: <a href="https://nepalitimes.com/opinion/comment/learning-from-jajarkot-what-we-didnt-after-2015-695vpzle">Learning from Jajarkot what we didn't after 2015</a>, Sushil Gyewali
The shape of high-rises also matters. Reinforced concrete buildings with asymmetric designs of the kind that are seen in newer structures in Kathmandu experience more torsion and shear during quakes. High-rises with regular geometry are stronger. &nbsp;&nbsp;
An even bigger concern is that of emergency evacuation and rescue in case of fire or earthquake. Kathmandu fire services do not have ladders that reach the higher floors of most new structures.
“High-rises mean more people and potentially higher casualties,” explains Shrestha. “We need immediate evacuation routes, fire escapes, emergency ladders, and fire trucks that can reach higher. Right now, safety features are voluntary and not mandatory.”
The street access, shelters, open spaces, and evacuation routes are integral to disaster preparedness and the safety of neighbourhoods and not just buildings. Most new high-rises in Kathmandu have narrow access roads.
Read also: <a href="https://nepalitimes.com/opinion/rebuilding-resilience-7-years-later">Rebuilding resilience 7 years later</a>, Anil Pokhrel
Since most of the buildings that survived the 2015 disaster were reinforced concrete structures, it fed the misconception that they are safer. But Himalayan seismologists say that if the intensity and duration of the shaking had been just a little higher, many substandard concrete structures would have collapsed.&nbsp;
And that is the final gap: Nepal’s limited expertise and equipment for search and rescue inside collapsed concrete structures. Kathmandu’s high-rises need to be better prepared for the next Big One.
“Structural safety and design were at the front and the centre after the 2015 earthquake, we also revised some building codes but we are back to square one with contractor-driven construction, especially in peri-urban areas,” says Sangeeta Singh, who is also with the National Planning Commission. “We need to monitor construction as much as design.”&nbsp;
Shrestha at NSET agrees there have been improvements in building practices in the past nine years, but adds, “We have both learnt and unlearnt lessons from 2015. The awareness hasn’t yet translated into action on safety.”
Read also: <a href="https://nepalitimes.com/here-now/lessons-not-learned-from-2015-o2etq6zu">Lessons not learned from 2015</a>, Sonia Awale

The rise of high-rises

Midway along the stretch of the ancient trade route between Tibet and India lies the Kel Tol neighbourhood. The name is derived from the original Koligrām, and it is believed the Koli people, who were originally from Rāmagrām in present-day southern Nepal near the Indian border, settled here. The Koli were the maternal ancestors of none other than the Buddha. Kel Tol is famous for the Buddhist monastic complex of Kanak Chaitya Mahāvihar, featuring the majestic two-tiered gilded temple of the white god Karunāmaya.&nbsp; This elaborately decorated courtyard is a bustling centre of the Vajrayāna sect of Buddhism, practised widely by the indigenous Newā people of Kathmandu Valley. Karunāmaya, also known as Ārya Avalokiteshwor, is defined in great detail in the 1st century CE Buddhist text Sadharmapundarikā where he liberates all sentient beings from suffering. He helps rid the eight external fears metaphorically equated with their equivalent internal states of mind: lions (pride), wild elephants (ignorance), fire (anger), snakes (jealousy), floods (attachment), imprisonment (miserliness), thieves (wrong views) and cannibals (doubt).  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240418130432_fe370cbee75003cd3eb5dccc7c3b2671630da193b0744db2aeac1bab3ff4a85c.jpg" data-media-id="editor_0" data-image-id="20240418130432_fe370cbee75003cd3eb5dccc7c3b2671630da193b0744db2aeac1bab3ff4a85c" data-rendition-name="original" width="1338" height="2000" loading="lazy" alt="Seto Machhindranath"> </figure>  In the Pancha Rakshyā Sutra, a Buddhist scripture from 200 CE, Ārya Avalokiteshwor was counted among the eight major deities. Followers of the Brāhminical god Shiva worship Ārya Avalokiteshwor as Seto Machhindranāth. For Shaivites, Machhindranāth is the Indian saint who founded the Nāth cult in the 10th century CE. He is the guru of saint Gorakhnāth. During the reign of Yakshya Malla (1428–1482 CE), a beautiful image of Ārya Avalokiteshwor was dug up by a farmer in present-day Jamal, which was then a cultivated area outside the city. The farmer, known as a Jamami (meaning the one from Jamal) took the image home for safekeeping. That night, Ārya Avalokiteshwor appeared in the farmer’s dream and told him that the proper place for him to reside is at the confluence of two rivers. The nearest confluence was at present-day Wongha (Indrachok) and the image was installed in the Kanak Chaitya Mahāvihar complex in Kel Tol near Wongha. This made it easier for city residents to pay homage to Ārya Avalokiteshwor and spread compassion. Soon, the deity came to be revered highly as Jamaleshwor, the one found in Jamal. Eventually, the name got corrupted, as happens often in Nepāl Bhāsā, to Janabahā Dyo. The courtyard where his temple is located is now popularly known as Janabahā.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240418130432_5c9b219530e400445ef4e7f64856b43e7cdb756be26d9ed4565c84044c178a7e.jpg" data-media-id="editor_1" data-image-id="20240418130432_5c9b219530e400445ef4e7f64856b43e7cdb756be26d9ed4565c84044c178a7e" data-rendition-name="original" width="2500" height="1668" loading="lazy" alt="Seto Machhindranath"> </figure>  The gilded temple of Janabahā Dyo, first built in the early 16th century CE, is adorned with wooden and metal artefacts that symbolise 108 forms of Ārya Avalokiteshwor. It stands out as the most decorated temple of its kind in Kathmandu. Today, Janabahā is a living heritage site where many ancient customs and rituals are widely practised as per Vajrayāna Buddhist tradition. Devotees throng the Janabahā Dyo shrine for daily worship and to receive Karunāmaya’s blessings. Being the compassionate one, Ārya Avalokiteshwor goes around town every year in his tall wooden chariot to allow sick and physically disabled devotees to pay homage to him from the comfort of their homes. One could say it is a door-to-door visit by the Compassionate One.&nbsp; For the pragmatic minded, the chariot festival is an annual renewal of communal harmony, validation of our ancient mathematical supremacy and demonstration of the need to keep practical skills alive, including the craft of building earthquake resilient houses.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240418130432_fc8b234ceca87dee4b99e897a485cef121fb953857fb61492a413fbfcc48360c.jpg" data-media-id="editor_2" data-image-id="20240418130432_fc8b234ceca87dee4b99e897a485cef121fb953857fb61492a413fbfcc48360c" data-rendition-name="original" width="2500" height="1667" loading="lazy" alt="Seto Machhindranath"> </figure>  The Janabahā Dyo chariot is pulled from Jamal, where his image was found by the farmer, through the historic heart of Kathmandu in a gala parade every year. The procession, accompanied by folk music ensembles and revellers, starts on the eighth day of the bright half of the month of Chaitra, and lasts up to a week (ending on Saturday this year). Hundreds of devotees pull the chariot along the streets as a way of expressing their gratitude to lord Karunāmaya for blessing them with compassion and well-being. Purna Ratna Vajrāchārya is an ordained priest who belongs to the clan responsible for taking care of Janabahā Dyo. He has been studying the design and architecture of the chariot for the past 40 years, and overseeing its construction for the past 15. He has learnt that the engineering principles of building the chariot are based on the mathematical system in which Buddhism is taught. For example, 365 pieces of wood are used in the chariot, each representing a day of the year. Each of the four wheels consist of 25 pieces of wood, totalling 100, representing completeness or fulfilment. The chariot is vertically divided into 13 sections, a parallel to the Buddhist concept of Trayodashi Bhuvana that describes the 13 steps that one must take to achieve the state of Nirvana.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240418130432_36d9964c9845f6d9a074786361fc5ab7d49138503ad162086998b731349b0ec0.jpg" data-media-id="editor_3" data-image-id="20240418130432_36d9964c9845f6d9a074786361fc5ab7d49138503ad162086998b731349b0ec0" data-rendition-name="original" width="2500" height="1668" loading="lazy" alt="Seto Machhindranath"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240418130432_2662753a9514a682ccdfd17bf05e2be3771183a68dc86b717ab67d9aad894563.jpg" data-media-id="editor_4" data-image-id="20240418130432_2662753a9514a682ccdfd17bf05e2be3771183a68dc86b717ab67d9aad894563" data-rendition-name="original" width="1668" height="2500" loading="lazy" alt="Seto Machhindranath"> </figure>  &nbsp;Exactly nine types of wood are used, which is the sum of the four base elements that make up the universe (earth, water, fire and air) and the five human senses. The height and length of the chariot is 32 arm’s length (hāt in Sanskrit), 14.8m. The number 32 represents the maximum number of auspicious and physical qualities one could possess to be considered an outstanding human being.&nbsp; Says Vajrācharya, “Observing how the chariot is built helps one learn the fundamental pillars of the Buddha’s teachings, and find an easier path to Nirvana.” The structural design of the nearly 15m wooden chariot is not only awe-inspiring but also gravity-defying. It leverages the pliancy of the materials used in its construction -- flexible joints tied with cane soaked in water for several days. The precise proportions of the chariot ensure great manoeuverability in the narrow streets along the route of the chariot procession that include some 90° bends, without colliding into houses.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240418130432_9f5c2943f5d6b3f0010d3d5213697549945e87a6f7d3d8cbadd69f0dea6c6e2c.jpg" data-media-id="editor_5" data-image-id="20240418130432_9f5c2943f5d6b3f0010d3d5213697549945e87a6f7d3d8cbadd69f0dea6c6e2c" data-rendition-name="original" width="2500" height="3750" loading="lazy" alt="Seto Machhindranath"> </figure>  Driving and steering the chariot with brute muscle power of the mirthful crowd is a seemingly impossible task. But this has been achieved year after year, despite the fact that the devotees who tug wildly at the ropes lassoed to the two front wheels, are most likely in high-spirits (pun intended). Sanjay Manandhar, a US-based technology entrepreneur, recounts how his high school physics teacher from Canada asked his students to go observe the locals build the chariots of Karunāmaya if they were interested in becoming engineers in the future.&nbsp; “That made no sense to me then, but, after all these decades, I now see clearly how the structural design of the chariot, adopted early on by our ancestors is full of earthquake-resilient properties that need to be applied in building houses in an earthquake-prone zone like Nepal,” says Manandhar. A highlight of the chariot festival is that human goddess Kumari makes an appearance at the final destination in Lagan, usually on the third day. This is only one of the 13 times that people get to see the Kumari outside her temple abode.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240418130432_08aa39f3f004a212b33c60a2840d6013110de15dd34a0288f699dd5fda8957ab.jpg" data-media-id="editor_6" data-image-id="20240418130432_08aa39f3f004a212b33c60a2840d6013110de15dd34a0288f699dd5fda8957ab" data-rendition-name="original" width="2500" height="1667" loading="lazy" alt="Seto Machhindranath"> </figure>  On the last day of the festival (Saturday), the image of lord Karunāmaya is carried on a palanquin by priests from Janabahā in a gala procession and brought back to his permanent residence at the temple in Kel Tol.&nbsp; The chariot festival is thought to have started during the reign of King Pratap Malla of Kantipur in the 17th century CE. For close to four centuries, the construction of the chariot and its operation has proven to be a phenomenal engineering feat, and the people’s faith in divinity means the tradition is alive.&nbsp; The essence of the colourful rituals and the religious beliefs of this ancient chariot festival is now all but lost. The logic, technology and practicality must be brought back to light, as they reflect the high civilisation and wisdom of our ancestors that we can leverage in modern times and into the future. &nbsp; Alok Tuladhar is a culture and heritage documentarian.

Kathmandu’s gravity-defying chariot festival

In the run-up to the third Nepal Investment Summit this weekend, there have been seminars, conferences and workshops where the discourse has revolved around the economy and the investment climate.
The consensus that Nepal needs foreign direct investments (FDI) to grow was repeated, and the familiar litany of reasons about why it has not been able to was discussed.&nbsp;
Policy advocates and regulators have understood that the lack of urgency is compounded by procedural inconsistencies, on top of the already deficient investment environment in the country.
It is a welcome change from what used to be flippantly accepting matters as given. There now seems to be a sense of urgency, with procedural inconsistencies and lack of harmonisation between various Acts and regulations openly discussed.&nbsp;
Government stakeholders also appear more willing to learn and attempt to be part of the solution. Whatever policy changes have been introduced in the past have been piecemeal and address the few rather than the entire industry. This left dual regulatory approaches aimed at similar players.&nbsp;
Read also: <a href="https://nepalitimes.com/opinion/killing-investment-in-nepal-in-10-easy-steps">Killing investment in Nepal in 10 easy steps</a>, Dibesh Karmacharya
This time, unlike in the past two Summits, the government seems to be committed to amending 9 Acts, a positive step towards showing commitment to change. However, the deadline to do so during the winter session of Parliament is over. The option mooted has been to have it passed through ordinance, a lesser appealing step; albeit, a positive one moving forward.&nbsp;
To attract FDI in a competitive global market means that Nepal has to demonstrate that it is serious about bringing in investments with a more consultative and collaborative approach with investors. A departure from procedural to a result-oriented focus is needed.&nbsp;
To put issues in perspective, Nepal needs US$20 billion in investments to meet the UN’s Sustainable Development Goals (SDG) targets by 2030. If net-zero decarbonisation targets are to be met by 2045, another US$7 billion will be required annually.&nbsp;
Looking at our investment history and poor government capital expenditure, the gap is long and wide. In fiscal year 2022-23 Nepal booked a lamentable ~$59 million in FDI (equity). Nepal is in fact the lowest market in South Asia for FDI with 0.3% of the regional average.&nbsp;
What is it that we can do to fill the gap?&nbsp;
First, we need to move away from the notion that Nepal only needs large investments. This has proven to be a mistake, and time series data have proven that smaller investments, in aggregate, make a larger impact on economies.&nbsp;
Read also: <a href="https://nepalitimes.com/news/poor-cash-rich-nepal">Poor cash-rich Nepal</a>, Sonia Awale
We talk about an ‘enabling environment’ but without the right tools. We place restrictions on interest on debt ceiling (SOFR +5.5), without risk premium adjustments, we do not have an active secondary market for bond trading, nor do we have a yield curve, an integral part of the bond market, which is inhibiting us from tapping into the trillion dollar green bond market.&nbsp;
In order to attract green financing, Nepal needs to develop its bond market. Sovereign risk rating has been mooted and was expected to be operationalised before the Investment Summit.&nbsp;
However, to be rated in an adverse economic environment could further deteriorate investment potential due to a lesser-than-expected rating.&nbsp;
Hedging is another instrument that needs further research on. A commercial bank last year showcased the first risk-hedging mechanism for an investment of $8 million. This can be the beginning to expand on its modality. &nbsp;
Subordinated debt instruments have been introduced, but on a special nod basis, this now needs to be institutionalised as it is the most applicable form of investment after equity in a market that has volatile forex reserves.&nbsp;
Read also: <a href="https://nepalitimes.com/editorial/invest-in-investment">Invest in investment</a>, Nepali Times
Viability Gap Funding has been introduced by multilateral development agencies implemented in solar installations. It is a tool to incentivise the private sector to invest in projects that are not financially lucrative initially, but have potential for profitability in the long run. This needs to be scaled up and replicated in sectors like infrastructure, where returns may not be immediate.
Moving forward, to attract FDI, Nepal needs to tap into the funds that are available for the growth of small and medium enterprises (SMEs) and climate change. Alternative investments such as Private Equity Venture Capital (PEVC) have been around in a structured manner in Nepal for nearly a decade now.
These funds have blended finance components and have attracted climate funding as well. PEVC is a new asset class and can address the issues of penetrating into SME financing by incorporating environment, social and governance issues into their investment process.&nbsp;
SMEs are the backbone of any economy, PEVC comes with the ability not only to scale up the enterprise with risk capital, but with the ability to bring technical knowhow to enhance not only the enterprise but also the entrepreneur.&nbsp;
Read also: <a href="https://nepalitimes.com/opinion/success-in-nepal-means-not-having-to-work">Success in Nepal means not having to work</a>, Anil Chitrakar
A differentiator from all other forms of financing available till date in Nepal. Blended finance is a way of de-risking investments, especially in frontier markets. Business Oxygen (BO2) is an example of blended finance with subordinated debt investments of IFC (World Bank Group) taking the lead and Climate Investment Funds along with FCDO as co-investors.&nbsp;
On a larger scale, the 216MW Upper Trisuli 1 is another example of blended finance with IFC, a Korean consortium and local investments. So far, we see that development finance Institutions have been taking the lead in Nepal as their risk appetite is greater than commercial investors and they are eager to help develop the financial markets.&nbsp;
In order to be sustainable, we need to step on this and attract commercial capital from all over the world. To do this there has to be political will to make that pivot.&nbsp;
Instead of being a means to an end, the two previous Investment Summits turned out to be intermittent and cosmetic, providing hardly any results. The third one’s success will depend on how the event will be implemented as a platform for continuous marketing for the country and facilitation for investors in future.&nbsp;
Nepal has outdone many countries in its macro-economic indicators, with sound forex reserves and a stellar history of debt payments to its creditors. This story needs to be propagated along with the drive for change to attract potential investors.
Read also: <a href="https://nepalitimes.com/opinion/comment/alternative-investments-to-attract-fdi">Alternative investments to attract FDI</a>, Siddhant Raj Pandey

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